Start here if you're new
what it is
Progress sells software that helps companies build, run, and secure business apps.
how it gets paid
Last year Progress Software made $978M in revenue. OpenEdge platform was the main engine at $255M, or 26% of sales.
why it's growing
Revenue grew 29.8% last year. The $725M quarter matters because it was 190% higher than last year.
what just happened
Progress posted $725M of quarterly revenue, up 190% from a year earlier.
At a glance
B+ balance sheet — decent shape, but not bulletproof
60/100 earnings predictability — reasonably predictable
39.8x trailing p/e — you're paying up for this one
4.3% return on capital — nothing to write home about
$1.54 fy2024 eps est
xvary composite: 46/100 — below average
What they do
Progress sells software that helps companies build, run, and secure business apps.
You do not swap out software that keeps your billing, files, and security running. Gross margin → money left after direct costs → so what: Progress keeps 80.5 cents of every sales dollar before overhead. ShareFile, added in 2024, makes leaving messier because customers have to move apps, files, and access rules together.
How they make money
$978M
annual revenue · their business grew +29.8% last year
OpenEdge platform
$255M
flat
ShareFile SaaS
$238M
+29.8%
Infrastructure security
$190M
flat
Data connectivity
$175M
flat
Developer tools and DevOps
$120M
flat
The products that matter
legacy software support engine
software licenses & maintenance
~70% of mix in source data
This appears to be the main revenue engine, and 36% of total sales come from outside the U.S. That tells you the installed base is broad, even if the current dataset does not break out cleaner segment economics.
cash flow base
cloud-based recurring products
saas offerings
~30% of mix in source data
This is the part of the story meant to look more like modern software. The source data does not give a clean standalone growth rate, which is its own signal: the transition narrative is clearer than the disclosure.
transition bet
application modernization pitch
ai-powered application tools
five-year doubling plan
Management is leaning on AI language while aiming to double the company's size every five years. Right now, that is more strategic framing than proven financial driver.
story vs. proof
Key numbers
$978M
ttm revenue
That is the size of the whole business. Bigger revenue gives Progress more room to absorb mistakes.
39.8x
trailing p/e
You are paying almost 40 years of earnings for one year of profits.
80.5%
gross margin
About 80 cents of each sales dollar survives direct costs, which is why software still beats hardware.
$1.1B
long-term debt
Borrowed money is 43% of capital, so the balance sheet has less room for error.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $1.1B (43% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PRGS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Progress posted $725M of quarterly revenue, up 190% from a year earlier.
ShareFile helped the top line jump, and gross margin stayed at 80.5%. EPS reached $1.07, which means the bigger company also made more money per share.
$725M
revenue
$1.07
eps
80.5%
gross margin
revenue jump
The $725M quarter matters because it was 190% higher than last year, and that kind of jump changes the size of the business fast.
source: company earnings report, 2026
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What could go wrong
The #1 risk is an acquisition model that adds revenue faster than it adds durable earnings.
med
acquisition-dependent growth
Management's stated plan is to double the business every five years. That is not a side project. It is the thesis. If deal flow slows or integration goes badly, the growth story shrinks fast.
This risk hits the whole narrative because recent 30% quarterly growth was already tied to ShareFile.
med
$1.1B debt load
Long-term debt is 43% of capital. That reduces flexibility at the exact moment management wants to keep buying growth.
More leverage means less room for weak quarters, refinancing surprises, or acquisition mistakes.
med
AI rebrand without organic proof
The company is marketing harder around AI-powered tools, but the current dataset does not show a clean breakout proving that pitch is driving standalone growth.
If the AI framing stays mostly marketing, the stock loses one of the few reasons investors might accept a premium multiple.
med
2026 convertible notes
There is $650M of 2.00% convertible notes due 2026. Conversion or refinancing can affect share count, future interest costs, or both.
That matters because capital structure is already central to the PRGS story, not background noise.
The combined risk picture is simple: a business with 80.5% gross margin still only earns a 7.48% net margin while carrying $1.1B of debt. If acquisitions stop doing the heavy lifting, the multiple has very little to defend it.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q1 2026 earnings on march 30
The next report is due after market close on Monday, March 30, 2026. You want to hear how much growth came from acquired revenue versus the underlying business.
metric
FY2026 EPS guidance of $1.74–$1.91
That range sits above the roughly $1.60 street view cited in the current snapshot. If management backs away from it, the credibility gap widens fast.
risk
$650M convert due 2026
Watch for any refinancing or conversion updates. In a leveraged story, capital structure changes are investment events, not accounting trivia.
trend
net margin versus gross margin
80.5% gross margin and 7.48% net margin tell two very different stories. If that gap does not narrow, scale is not translating into better economics for you.
Analyst rankings
earnings predictability
60 / 100
In human-speak, analysts think the business is modelable, but not clean enough to trust blindly.
risk rank
3
That is middle-of-the-pack safety. Not distressed, not a bunker.
price stability
70 / 100
The stock is more controlled than many small caps, but the 52-week range of $34–$66 says sentiment still moves it around.
source: institutional data
Institutional activity
institutional ownership data for PRGS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$44
current price
n/a
target midpoint · n/a from current
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